The Gioi Di Dong is currently the largest listed retail company in Vietnam, accounting for 50% of the electronics market share. To continue to maintain growth momentum, the CEO of The Gioi Di Dong has announced a trial of a new business model called the “Collaborator Model”. The goal is to capture the remaining 20% of the market share of 30,000 small phone stores in Vietnam.
MWG’s affiliate business model is this: they will recruit small retail store owners who are selling smartphones or electronics in remote areas – where the two chains Dien May Xanh and The Gioi Di Dong have not reached – to become sales associates. Accordingly, MWG will pay commissions from 5% to 20% depending on the product and time, to the associates.
This model brings some benefits to small retail stores such as: No need for capital, no need to store inventory. As for customers, they will buy products at the listed price on the TGDĐ website, enjoy sales and warranty policies including installment payments, the difference is that they will initially approach through agents.
The collaborators only need to sell products according to the prices and payment methods available in MWG’s system, and all the remaining parts such as delivery, warranty, payment, etc. are the responsibility of The Gioi Di Dong. As for customers, instead of going to the websites and apps of The Gioi Di Dong or Dien May Xanh chains to buy products, we ask the collaborators to help us buy products.
In the initial phase, all activities will be conducted through the website – app, the store owner will introduce the products available on the website – app of this business. The collaborators act as consultants for TGDĐ’s products. When the customer agrees to buy, all remaining operations will be performed by the company. Therefore, the price of the product to the customer sold according to the model is equal to the official listed price on online platforms, only the collaborators receive commission.
See more : Software for managing collaborators, agents, commissions and sales
CEO of Mobile World – Mr. Doan Van Hieu Em also said that when implementing the program, the most difficult thing was how to approach about 30,000 agents in the empty market outside, so that they know about the program, install and sell on it. The second difficulty was taking care of and guiding them so that they get used to the system. There are agents who have been in business for decades, they are used to the old form of business and trading, used to agents supplying them with goods. In the near future, Mobile World will open many agent care and customer care programs for this group of collaborators.
See more : 5 tips to successfully retain agents and collaborators
“Right now, we just see the opportunity and jump in. Only when we see initial results will we come up with the next appropriate policies or set specific business results goals,”
With this model, our point of view is that we can make a little less profit, share it with collaborators and customers, then we can capture that 20% market share,” Mr. Doan Van Hieu Em explained more clearly.
See more: Video of Bee Affiliate software features that help automate affiliate management
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